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The evolution of the Polish government bond market

Author

Listed:
  • Piotr Bartkiewicz

    (SGH Warsaw School of Economics, Collegium of Economic Analysis, Warszawa, Poland)

Abstract

Poland’s marketable government debt has grown from essentially zero in the early 1990s to USD 180 bn by 2019, with a wide range of maturities and security types. The aim of the article is to describe the long-term trends in the Polish sovereign local currency debt. Changes in its composition, maturity profile and ownership; structure are analysed. The Ministry of Finance’s databases on bond transactions and secondary market activity are used. Since early 2000s the market has become less fragmented and the ownership structure has shifted considerably in reaction to global and national factors. Debt management strategy has stabilized the market and reduced frictions. Countries developing their local currency bond markets should be encouraged to avoid market fragmentation and concentrate on selected benchmark issues. Creating a functioning local currency bond market is essential in avoiding the so called „original sin“, but must be part of a broader institutional push.

Suggested Citation

  • Piotr Bartkiewicz, 2021. "The evolution of the Polish government bond market," Public Sector Economics, Institute of Public Finance, vol. 45(1), pages 149-169.
    • Handle: RePEc:ipf:psejou:v:45:y:2021:i:1:p:149-169
    DOI: 10.3326/pse.45.1.5
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    References listed on IDEAS

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    More about this item

    Keywords

    fixed income; bond market; market structure; foreign investors;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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